Question: A bank's assets tend to be long - term while its liabilities are short - term. Therefore, when interest rates raise the value of the
A bank's assets tend to be longterm while its liabilities are shortterm. Therefore, when interest rates raise the value of the bank's assets
A decrease by less than the value of its liabilities.
B decrease by more than the value of its liabilities.
C increases by more than the value of its liabilities.
D increases by less than the value of its liabilities.
E increases by the same amount as do its liabilities.
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